I have a background in the brokerage business. There is no doubt that competitive pressure will continue to drive down commissions and it will even go to zero at some point, but the impending ruin of Schwab, eTrade, Merrill and others won't happen. Schwab was never able to kill Merrill after all, even though from a pricing standpoint, they should have been dead long ago. It will take a long time for a critical mass of people with a high net worth to leave for something like Zecco. Doesn't mean there is no business here, but it will be for accounts with low balances, which when trading actively tend to go to zero rather quickly. And if you think they'll get all the twenty year olds who are price sensitive who eventually become the 50 years olds with money... once you have a family and some assets, you tend to look for solutions that encompass more than trading stocks (mutual funds...). When that happens, you don't care if you have to pay $10 for a trade.
Matt Marshall
· 3 years ago
Mr. Posey, nice catch. Has been corrected.
Niraj
· 3 years ago
What is Zecco's business model?
steve
· 3 years ago
Looking forward for the trend to continue but I certainly won't risk large amounts of money with the 1st guy. There is a certain amount of value in having a respected company holding my net worth.
Howard Rauscher
· 3 years ago
you can actually view more of the site, if you view the source, you can get links places withing the site.
Nice one Morten. He is a pioneer like no cowboy before him. But his instincts are pretty good. Track record speaks for itself. Although that may be more about his contacts.
The hot startups today all seem to have one thing in common today - they all have "FREE" as a business model. That is why when I read about Zecco.com, the free online stock trading site backed by the funder of Skype, my eyes rolled over. Have I heard this story before or what? Once and for all entrepreneurs, I would like to address the question that is on every Web 2.0 entrepreneur's mind: Is "FREE" a business model?
Kempton
· 3 years ago
Hi Matt,
Neat story. If there isn't any major hidden catch, this may be quite interesting indeed. I will definitely pay attention to it when it launch.
Cheers, Kempton -------- P.S. My good friend Sean created this 2-minute video "The Elevator Pitch" for CBC's Dragons' Den. See if you agree with his view. http://www.youtube.com/watch?v=Tq0tan49rmc
Wing Yu
· 3 years ago
Sogoinvest.com already offers $1 trading. I've always believed that it's possible to have zero-cost discount trading, but it needs to be subsidized by other revenues. The company could advertise or collect leads for big-ticket items like insurance policies, refinancing, airline tickets, etc., or just invest your cash. With certain firms, you can already trade for free if you have more than $1mm in assets. Think of the interest that they're making with the cash part of your holdings each day.
Steven Burda, MBA
· 3 years ago
I'm giving Zecco a try!
-Steven Burda
David
· 3 years ago
Matt,
I don't think Zecco' s business model is to ruin the Schwabs of this world. The market they are going into is growing by 150,000! consumers each month since Jan06 due to new government pension rulings. I also learned that Zecco uses the same trading platform and settlement/clearing house as Etrade Canada and as many other professional brokers plus the customers are insured to 25 Million USD...that is more than Etrade as a matter of fact. It looks like they got their stuff covered. Next to this they will build a massive community that will be able to comment and discuss any financial/investment issues, that also is new to the financial industry as we know it up until now..the establishment is used to pumping info towards the customer one way! Would be great to share information on a customer level, normal language.
David
· 3 years ago
Matt,
I don't think Zecco' s business model is to ruin the Schwabs of this world. The market they are going into is growing by 150,000! consumers each month since Jan06 due to new government pension rulings. I also learned that Zecco uses the same trading platform and settlement/clearing house as Etrade Canada and as many other professional brokers plus the customers are insured to 25 Million USD...that is more than Etrade as a matter of fact. It looks like they got their stuff covered. Next to this they will build a massive community that will be able to comment and discuss any financial/investment issues, that also is new to the financial industry as we know it up until now..the establishment is used to pumping info towards the customer one way! Would be great to share information on a customer level, normal language. In all I think they are not out there to ruin the establishment as a Business Model, but I think they may be able to do just that. David.
Steven Burda, MBA
· 3 years ago
I wish the Oct 9th date came today... =) I need to start my buying again...
-Steven Buda, MBA
Murtaza Hussain
· 3 years ago
Morten rocks!!!
Alex
· 3 years ago
Please don't tell me this is going to be an ad-based service...
Bill
· 3 years ago
Too funny. I was just on the Zecco beta site and saw a Google Ad for sogoinvest.com in the "about us" section.
Alex
· 3 years ago
WOW...of course that would come up!
Lec
· 3 years ago
There is not enough info out their about Zecco to make an informed choice on whether to invest with Zeccp; however, Zecco's marketing strategy has been done before. Hype.
Lec
· 3 years ago
By the way, I know it should be spelled there..
SL2005
· 3 years ago
I found some features of the trading platform from
1. Min. for opening an account is $2,500 2. Yes, margin accounts; Margin interest rates will vary with size of your portfolio but are right in line with other online brokers 3. Zecco Trading has ACH (we don’t hold the funds any longer than they take to clear) It’s always bothered us how long ACH takes when it should be instantaneous. We’re working on it. Yes, this is one of the ways that you can transfer funds to your account, as well as check or wire
...
dowjobber
· 3 years ago
When you look at a full service broker's financial statements you will find that "commissions" are a small part of the revenue pie. Fees and interest and trading profits are the largest part of revenues. For example a "general account agreement" allows the broker to loan your securities. For this loan of your stocks, they collect interest. This is one of the most lucrative parts of the brokerage industry. Interest is also charged for margin and also collected of free balances (free balances= your money which has not yet been used to pay for a stock) So there is a lot of float of other folks money in brokerage. Years ago,I had one broker that paid customers from the Bank of Guam! And of course there are fees and trading profits, some you see and some you can't see because of a lack of transparency. So, no commission trades are certainly doable because execution costs have almost completely disappeared with ECNs which match buyers and sellers.
Anders MIdtgaard
· 3 years ago
This might actually bring back all the daytraders. We can now expect more volatile markets if it really takes off.
alternative to
· 3 years ago
Greta masterings?hazy,gumming.parallax convertible transposes
Renters Insurance California f
· 2 years ago
This was a great site. I needed to find something for my Homework and This site helped me out so much! Thanx alot!!!!
Scott
· 2 years ago
Looks like there will be ads featured to generate revenue... but if you do use a trader or get advice the will charge you...
Columbus
· 2 years ago
You are doing a wonderful thing here on the Internet. I wish you the very best. Kindest regards.
Rakesh
· 2 years ago
I wanted to start with Zecco but their customer service has deemed themselves completely unrelaible. The representatives I spoke to were very rude and one even pretended he could not hear me when I asked him what his name was (after he was rude to me). He was like "Mr. Rakesh, Mr. Rakesh, I can't hear you" and then he hung up. It was awful. Zecco needs to replace him but I don't even know his name.
All Comments
Zeeco.com is incorrect!
Zecco.com is correct!
Just a simple typo....
http://www.zecco.com/markets/default.aspx
Best of luck.
The hot startups today all seem to have one thing in common today - they all have "FREE" as a business model. That is why when I read about Zecco.com, the free online stock trading site backed by the funder of Skype, my eyes rolled over. Have I heard this story before or what? Once and for all entrepreneurs, I would like to address the question that is on every Web 2.0 entrepreneur's mind: Is "FREE" a business model?
Neat story. If there isn't any major hidden catch, this may be quite interesting indeed. I will definitely pay attention to it when it launch.
Cheers,
Kempton
--------
P.S. My good friend Sean created this 2-minute video "The Elevator Pitch" for CBC's Dragons' Den. See if you agree with his view.
http://www.youtube.com/watch?v=Tq0tan49rmc
-Steven Burda
I don't think Zecco' s business model is to ruin the Schwabs of this world. The market they are going into is growing by 150,000! consumers each month since Jan06 due to new government pension rulings. I also learned that Zecco uses the same trading platform and settlement/clearing house as Etrade Canada and as many other professional brokers plus the customers are insured to 25 Million USD...that is more than Etrade as a matter of fact.
It looks like they got their stuff covered.
Next to this they will build a massive community that will be able to comment and discuss any financial/investment issues, that also is new to the financial industry as we know it up until now..the establishment is used to pumping info towards the customer one way! Would be great to share information on a customer level, normal language.
I don't think Zecco' s business model is to ruin the Schwabs of this world. The market they are going into is growing by 150,000! consumers each month since Jan06 due to new government pension rulings. I also learned that Zecco uses the same trading platform and settlement/clearing house as Etrade Canada and as many other professional brokers plus the customers are insured to 25 Million USD...that is more than Etrade as a matter of fact.
It looks like they got their stuff covered.
Next to this they will build a massive community that will be able to comment and discuss any financial/investment issues, that also is new to the financial industry as we know it up until now..the establishment is used to pumping info towards the customer one way! Would be great to share information on a customer level, normal language.
In all I think they are not out there to ruin the establishment as a Business Model, but I think they may be able to do just that.
David.
-Steven Buda, MBA
http://www.indextown.com/archives/2006/09/25/tr...
1. Min. for opening an account is $2,500
2. Yes, margin accounts; Margin interest rates will vary with size of your portfolio but are right in line with other online brokers
3. Zecco Trading has ACH (we don’t hold the funds any longer than they take to clear) It’s always bothered us how long ACH takes when it should be instantaneous. We’re working on it. Yes, this is one of the ways that you can transfer funds to your account, as well as check or wire
...
So, no commission trades are certainly doable because execution costs have almost completely disappeared with ECNs which match buyers and sellers.
You will get what you pay for.
Move on